Summary
Australia and the European Union signed a trade deal to remove tariffs on nearly all Australian critical minerals, aiming to reduce reliance on China for rare earths. This agreement is expected to increase EU imports from Australia and significantly boost the Australian economy.
Key Facts
- Australia and the EU signed a trade deal that removes tariffs on critical minerals.
- The deal took eight years to finalize.
- China controls about 90% of the processing of rare earths globally.
- Rare earths are vital for products like electric cars and camera lenses.
- The agreement will remove over 99% of tariffs on EU goods exported to Australia.
- EU exports to Australia could increase by up to 33% in ten years.
- The deal is expected to add approximately 10 billion Australian dollars annually to Australia's economy.
- The EU was Australia's second-largest source of foreign investment in 2024.
